On the one hand, he is savoring feelings of victory in the wake
of a recent decision by the Los Angeles City Council to draft an
ordinance legalizing homebased businesses. (Proponents expect it to
be law by the time you read this.) On the other hand, he is
appreciating the irony of possibly running one of the businesses
prohibited under the City of Angels' new ordinance.

Machi, who owns a 4-year-old homebased video production company
in West Hills, California, has in the last two years been very
active in the battle to get city council members in the
nation's second most populous city to give entrepreneurs the
right to openly operate companies from home. In fact, Machi donated
his time to create a video record of a public information workshop
proponents put together on the issue. "I cut three hours of
footage down to a 20-minute version with the best moments of the
event, including both pro and con viewpoints," he says. Then,
to protect himself, Machi sent the video anonymously to all 15 Los
Angeles City Council members.

At the council meeting, Machi watched tensely as city planning
officials voiced strong reservations, politicians tacked on
amendments and compromised on changes, and a parade of supporters
and opponents tried to sway the council in their favor.

The 13-1 decision to send the legislation to the city
attorney's office for drafting as an ordinance--which is the
next step before approval--thrilled the videographer. But it also
posed a major problem, because his type of company was on the
ordinance's list of prohibited businesses.

According to the ordinance, recording and motion picture
production studios cannot be operated in a home. In addition, all
homebased businesses must be located inside the main residence.

"The intent of this provision is to exclude studios that do
on-site photo shoots and larger-scale recording and film sessions,
not someone sitting at home with two or three VCRs dubbing
tape," explains Kenneth Bernstein, Planning and Transportation
Deputy for Laura Chick, the councilwoman who aggressively
championed legalization in the L.A. City Council.

Bernstein says adjustments have been made to clarify the
language regarding this issue, as well as the question of whether
doctors, dentists, ministers and the like can continue to maintain
homebased offices.

Its About Time

A review of the nation's 10 most populous cities--Chicago,
Dallas, Detroit, Houston, Los Angeles, New York, Philadelphia,
Phoenix, San Antonio and San Diego--shows Los Angeles was the last
to legalize home occupations. The battle to legalize homebased
businesses in Los Angeles began 11 years ago and went through
myriad public hearings, council committee hearings, planning
department reviews and revisions.

The new ordinance includes a set of performance standards a
business must meet, as well as a list of prohibited home
occupations. If a business falls outside the standards, an
entrepreneur can pay a fee to go before the zoning board and try to
get a use variance to operate a business.

In addition to a regular business license, homebased
entrepreneurs will need to pay a small annual fee, which will be
used to enforce compliance with the new law. The ordinance also
includes a provision for an expedited process to shut down business
owners who repeatedly violate the new law. The council will review
the ordinance in six months and again in one year to see if any
changes need to be made.

While the move by Los Angeles may seem like merely a local
issue, advocates around the country say there is a national
impact.

"With a city the size of Los Angeles, there's obviously
going to be an impact around the country," says David Buchen,
director of the Homebased Business Project at the University of
Wisconsin, Whitewater. "Other cities will see this, and it
will be a wake-up call on how important this issue is. The
electronic revolution has been around a long time, and there are so
many people working from home that it's imperative to set up an
infrastructure so people can do it legally."

"Los Angeles is another arrow in the quiver of homebased
business to point toward legitimization," says Ronald Wohl,
state and government relations director of the American Association
of Home-Based Businesses Inc. "This [ordinance in Los Angeles]
means homebased businesses will file state and local taxes as a
business. They can get a business license, register the name, and
become a full-fledged business entitled to the same benefits and
recognition in the community as other businesses."

Buchen echoes Wohl's sentiments on the advantages Los
Angeles homebased entrepreneurs can now reap. "I see this as
opening the door for entrepreneurs to be able to truly market
themselves," he says. "They can now easily join the
chamber of commerce and be out there promoting
themselves."

For Los Angeles entrepreneur Diann Powell, a staunch and vocal
advocate of legalizing homebased businesses, it's a question of
respect. "There's that whole issue of working according to
the law," she says. "If you're out there struggling
trying to build a business, it's very demoralizing not to be
legal. I think the fact that we're recognized now is the most
important issue."

Looking Ahead

Deborah Schacher, founder of the Home Office and Business
Opportunities Association, cautions that the new ordinance is only
a first step. She thinks Los Angeles officials should look at the
nuts and bolts of actually implementing the law.

For example, the form created by the city for homebased
businesses to fill out is critical. "The information
they're asking for becomes public record," says Schacher.
"If [they want you to give] your home address, our concerns
are about protection for people." Instead, Schacher would like
to see a form that gives entrepreneurs the option of listing a
mailing address.

She would also like to see the city's economic development
department reach out to homebased business owners by providing
workshops and seminars to help educate them and promote homebased
business.

Whatever direction Los Angeles takes now, the most important
step has been taken. No longer running to catch up with the rapidly
accelerating homebased business train, the city has, as one council
member put it, managed to catch onto the caboose just as it whizzed
past.

Conference Call

A National Conference Gives Hands-On Help.

The Tampa Bay chapter of the American Association of Home-Based
Businesses is hosting a national conference to give entrepreneurs
and prospective business owners tips and information on operating
from home.

The three-day conference, to be held October 11 to 13 at the
HarborView Center in Clearwater, Florida, will feature 27
informative workshops on topics such as starting and growing a
homebased business.